| | | | | | | |  | City Council
Staff Report
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| Subject: | Resolutions required for the levy and collection of assessments for Landscape and Lighting Maintenance District No. 2 for the 2020-21 fiscal year |
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| | Date: | May 12, 2020 |
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| | Submitted By: | Ted Williams, Financial Analyst
Mary Rister, Finance Manager |
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| | Department: | Administrative Services - Finance |
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| | | | | | | | Staff Recommendation: | Adopt the following resolutions:
A. Resolution of the City Council of the City of Rocklin ordering the Preparation of the Engineer’s Report for the levy of the annual assessment for Landscape and Lighting Maintenance District No. 2.
B. Resolution of the City Council of the City of Rocklin Approving the Engineer’s Report for the levy of annual assessment for Landscape and Lighting Maintenance District No. 2.
C. Resolution of the City Council of the City of Rocklin declaring its intention to levy and collect annual assessments for Landscape and Lighting Maintenance District No. 2 and setting a public hearing thereon. |
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| | | | | | | | | BACKGROUND: | In accordance with the California Streets and Highway Code Part 2, section 22500 known as the Landscape and Lighting Act of 1972 ("Act"), the City of Rocklin established Landscape and Lighting Maintenance District No. 2 (the District). The District was formed for the purposes of maintaining street lights, safety lighting, and all costs related to the maintenance of roadway landscaping located within the District.
The Act identifies the process required to annually levy and collect assessments to meet the needs of the District. The Act requires an annual Engineer’s Report to be prepared each year assessments are to be levied and collected. The report is to contain plans and specifications regarding improvements to be maintained, an estimated cost for maintaining the improvements, a diagram of the proposed assessment area and an assessment of the estimated costs. Upon completion, the Engineer’s Report shall be submitted to the Legislative Body for approval or modification and approval. Once the Legislative Body has approved the Engineer’s Report, a Resolution of Intent to levy and collect assessments for the district shall be approved and a time set for a public hearing regarding the levy of the proposed assessment.
For areas within the district created before the 1996-97 tax year, Proposition 218 requires any modification of assessment rates or methodologies to be brought to the voters. The maximum allowable tax for these areas has not changed since the 1996-97 tax year.
The maximum tax for areas annexed into the District after the 1996-97 tax year are based on a base year rate equivalent to the first year’s actual energy and maintenance costs, increased by an annual 4% inflationary factor.
Budgeted expenses for the District exceed budgeted tax revenue by $155,600 due to an increase in operating expenses. District reserves will cover the shortfall.
The attached report shows that based on the budgeted needs of the District and depending on location, the District’s assessment for fiscal year 2020-21 will be between $5.00 and $532.29 for a single family residential parcel.
Per The Landscaping and Lighting Act of 1972, in order for the City to levy and collect assessments for the 2020-21 fiscal year to pay for the cost of maintaining street lights, safety lighting, and maintenance of roadway landscaping for the District, it is necessary for the City Council to request the preparation of an Engineer’s Report, approve or modify and approve the completed Engineer’s Report, declare an intent to levy and collect assessments, and set a date for a public hearing regarding these assessments.
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| | | | | | | | | Fiscal Impact: | | It is proposed that the assessments for 2020-21 fiscal year be set at approximately $2,405,000. Based on the District’s budget this level of funding will leave the District with a deficit of $155,600 for fiscal year. |
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